1. Find Discount factor for Interest rate i = 10%, Compounded (n) = 1

Solution:
`i=10%=0.1` per year (Interest rate)

`n=1` years (Number of periods)

Discount Factor
`DF=1/(1+i)^n`

`=1/(1+0.1)^1`

`=1/(1.1)^1`

`=1/(1.1)`

`=0.9091`

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2. Find Discount factor for Interest rate i = 10%, Compounded (n) = 2

Solution:
`i=10%=0.1` per year (Interest rate)

`n=2` years (Number of periods)

Discount Factor
`DF=1/(1+i)^n`

`=1/(1+0.1)^2`

`=1/(1.1)^2`

`=1/(1.21)`

`=0.8264`

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Find Discount factor for Interest rate i = 10%, Compounded (n) = 3

Solution:
`i=10%=0.1` per year (Interest rate)

`n=3` years (Number of periods)

Discount Factor
`DF=1/(1+i)^n`

`=1/(1+0.1)^3`

`=1/(1.1)^3`

`=1/(1.331)`

`=0.7513`

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